1 Series 780 Test No. 581 October 7, 2015 U.S. CUSTOMS AND BORDER PROTECTION Customs Broker License Examination DIRECTIONS - READ CAREFULLY This examination consists of 80 questions. The minimum passing score is 75%. For each question, choose the letter representing your answer (A, B, C, D, or E) and completely darken the corresponding space on your answer sheet. There is no penalty for guessing; therefore, you should attempt to answer every question. Each question is designed to have a single best answer. You are responsible for having the following references: Harmonized Tariff Schedule of the United States (2014 Basic Edition, No Supplements) Title 19, Code of Federal Regulations (Revised as of April 1, 2014) Customs and Trade Automated Interface Requirements (CATAIR) Appendix B - Valid Codes Appendix D - Metric Conversion Appendix E - Valid Entry Numbers Appendix G - Common Errors Glossary of Terms Instructions for Preparation of CBP Form 7501 (July 24, 2012) Right to Make Entry Directive 3530-002A This examination lasts four and a half (4.5) hours. When you finish, please give your answer sheet to the test administrator. You may take this booklet with you. In addition to the 80 examination questions, U.S. Customs and Border Protection (CBP) will be administering six voluntary process evaluation questions. The first three voluntary questions, located in Section 1, will take place before you begin the timed component of the examination. The last three voluntary questions, located in Section 3, will take place after you complete the test, but within the test timeframe. Each set of voluntary questions is expected to take no longer than 2 minutes each. The purpose of this voluntary process is only to enhance future testing processes. These questions are completely voluntary and will have NO impact on your scores. DO NOT TURN THIS PAGE UNTIL TOLD TO DO SO BY THE EXAMINER.
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1
Series 780 Test No. 581
October 7, 2015
U.S. CUSTOMS AND BORDER PROTECTION
Customs Broker License Examination
DIRECTIONS - READ CAREFULLY
This examination consists of 80 questions. The minimum passing score is 75%. For each
question, choose the letter representing your answer (A, B, C, D, or E) and completely darken
the corresponding space on your answer sheet. There is no penalty for guessing; therefore, you
should attempt to answer every question. Each question is designed to have a single best
answer.
You are responsible for having the following references:
Harmonized Tariff Schedule of the United States (2014 Basic Edition, No
Supplements)
Title 19, Code of Federal Regulations (Revised as of April 1, 2014)
Customs and Trade Automated Interface Requirements (CATAIR)
Appendix B - Valid Codes
Appendix D - Metric Conversion
Appendix E - Valid Entry Numbers
Appendix G - Common Errors
Glossary of Terms
Instructions for Preparation of CBP Form 7501 (July 24, 2012)
Right to Make Entry Directive 3530-002A
This examination lasts four and a half (4.5) hours. When you finish, please give your answer
sheet to the test administrator. You may take this booklet with you.
In addition to the 80 examination questions, U.S. Customs and Border Protection (CBP) will be
administering six voluntary process evaluation questions. The first three voluntary questions,
located in Section 1, will take place before you begin the timed component of the examination.
The last three voluntary questions, located in Section 3, will take place after you complete the
test, but within the test timeframe. Each set of voluntary questions is expected to take no longer
than 2 minutes each. The purpose of this voluntary process is only to enhance future testing
processes. These questions are completely voluntary and will have NO impact on your scores.
DO NOT TURN THIS PAGE UNTIL TOLD TO DO SO BY THE EXAMINER.
2
THIS PAGE IS INTENTIONALLY BLANK.
3
Section 1: Pre-Examination Process Evaluation Survey
This survey is being administered to collect information about the examination process for the
Customs Broker Exam. The survey is completely voluntary and your responses will have no
impact on your scores for this exam.
1) What is your background with regard to Customs laws and regulations?
A) Former CBP employee
B) Works or has worked for a broker
C) Works or has worked for an importer on trade issues
D) No experience with Customs laws and regulations
2) How did you prepare for the Customs Broker Examination?
A) Took an in-person course through an educational institution
B) Took an online course through an educational institution
C) Self-prepared
D) Did not spend time preparing for examination
3) How many hours did you spend preparing for the examination?
A) 1-10
B) 11-25
C) 26-100
D) More than 100
E) Did not spend time preparing for examination
DO NOT TURN THIS PAGE UNTIL TOLD TO DO SO BY THE EXAMINER.
4
Section 2: Customs Broker License Examination
Category I – Practical Exercises Questions 1-10
Category II – Powers of Attorney Questions 11-13
Category III – Entry Questions 14-21
Category IV – Foreign Trade Zones Questions 22-25
Category V – Classification Questions 26-39
Category VI – Valuation Questions 40-44
Category VII – Free Trade Agreements Questions 45-50
Category VIII – Drawback Questions 51-54
Category IX – Antidumping/Countervailing Questions 55-57
Duties
Category X – Marking Questions 58-61
Category XI – Broker Compliance Questions 62-66
Category XII – Fines and Penalties Questions 67-71
Category XIII – Bonds Questions 72-75
Category XIV – Intellectual Property Rights Questions 76-80
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Category I: Practical Exercises
Practical Exercise 1:
Using the one line entry summary provided below, answer questions 1 through 3.
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1) Which of the following free trade agreements is claimed?
A) U.S. – Colombia Free Trade Agreement
B) U.S. – Chile Free Trade Agreement
C) U.S. – Korea Free Trade Agreement
D) North American Free Trade Agreement
E) There is no free trade agreement claimed
2) What is the correct value for Block 35, “Total Entered Value”?
A) $5,063.18
B) $7,247.96
C) $17,042.00
D) $2,184.78
E) $17,101.03
3) What is the correct value for Block 39, “Other”?
A) $2,184.78
B) $59.03
C) $7,247.96
D) $7,306.99
E) None of the above
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Practical Exercise 2:
Using the invoice provided below, answer questions 4 through 6.
COMMERCIAL INVOICE
Mario’s Foods
1) Shipper/Exporter
Mario’s Foods
Atlixco 100B
Mexico City Mexico
2) No. and Date of Invoice
US001836 Monday, January 13, 2014
3) No. and Date of L/C
4) For Account and Risk of Messers
Jones Cafe
301 Texan Plaza
Dallas, TX 78205
5) L/C Issuing Bank
6) Notify Party 7) R.Schaub, 231-423-1234
8) Remarks
P/O No.: TPS001
Not subject to AD/CVD cases 9) Port of Lading
Mexico City, Mexico 10) Final Destination
Dallas
11) Carrier
12) Departure on or
about
January 20, 2014 Marks and Numbers of Pkgs.
Fernando’s Pickles 25/1. 16 Ounce Jar.
13) Description of
Goods
14) Quantity 15) Unit Price 16)
Amount
Country of Origin: Mexico
Pickled cucumbers 10000 pieces 0.70 USD
$7,000
One pound jar
TOTAL
$7,000
Master Bill: 001-63324833
House Bill: COSC56676406
Estimated Entry Date 01/20/2014
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4) If Dallas, TX, is the port of entry, what is the port code?
A) 2101
B) 5311
C) 5501
D) 5507
E) 6420
5) Block 31 of the CBP Form 7501 should indicate _____ for the pickles.
A) 16 ounces
B) 10,000 pounds
C) 10,000 pieces
D) 10,000 kilograms
E) 4,536 kilograms
6) The Manufacturer’s Identification Code is:
A) MXELGOR2568MEX
B) MXGORDES2BAGTA
C) MXMARFOO100MEX
D) NAFTAMARFOOMX
E) TAELGOR2568MAT
9
Practical Exercise 3:
Using the entry summary above, please answer questions 7 and 8.
7) What type of bond was used for this entry summary?
A) Single Entry Bond
B) Continuous Bond
C) Carriers Bond
D) Transfer Bond
E) Warehouse Bond
8) What is the mode of transportation?
A) Vessel; container
B) Trucker; container
C) Mail
D) Vessel; non-container
E) Rail; container
10
Practical Exercise 4:
Using the edited 7501 below, please answer questions 9 and 10.
9) What is the Merchandise Processing Fee amount for Block 39?
A) $23.30
B) $25.00
C) $36.28
D) $151.30
E) $485.00
10) What duty amount should be in Block 37?
A) $0.00
B) $161.29
C) $262.31
D) $485.00
E) $6,726.00
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Category II: Power of Attorney
11) When may a power of attorney be revoked?
A) At any time by written notice given to and received by the Port Director
B) It may not be revoked
C) Within 30 days from execution
D) Upon written approval by the Port Director
E) Prior to being submitted to CBP
12) What is the penalty, as stated by the CBP Mitigation Guidelines, for each power of attorney
that a broker does not have on file?
A) $250
B) $500
C) $1,000
D) $1,500
E) $2,000
13) ABC Brokers has authorized its unlicensed employee Joe to sign Customs documents on its
behalf and has executed a valid Power of Attorney for this purpose. Which of the following
reflects Joe’s legal authority to sign documents?
A) Joe is unlicensed, and even with a valid Power of Attorney, he cannot sign Customs
documents.
B) Joe can sign Customs documents without a valid Power of Attorney.
C) ABC Brokers cannot execute a valid Power of Attorney because Joe is unlicensed, and
therefore cannot sign Customs documents.
D) ABC Brokers, upon request from Customs, must furnish proof of the existence of the
Power of Attorney.
E) Joe is required to file the Power of Attorney with the port director.
12
Category III: Entry
14) In the following scenario, what is the date of entry for the imported merchandise if it is
approved to be released under the immediate delivery procedure?
Eight automobiles made in Canada were purchased by an auto dealership in the United
States on May 1, 2015. The automobiles were loaded onto a tractor-trailer at the Canadian
assembly plant on May 5, 2015. The truck cargo was examined by CBP at the U.S. border
and released into the United States on May 7, 2015. The tractor-trailer arrived at the U.S.
dealership on May 8, 2015, and the automobiles were unloaded. The automobiles qualify
for duty free status under NAFTA, and the entry summary with estimated duties was
submitted to CBP on May 15, 2015.
A) May 1, 2015
B) May 5, 2015
C) May 7, 2015
D) May 8, 2015
E) May 15, 2015
15) You have a shipment of merchandise that reports 0.48 gross kilograms. What is the
reportable gross shipping weight of less than 1 kilogram on the CBP Form 7501 in column
30?
A) 1 KG
B) 0 KG
C) 0.48 KG
D) 0.50 KG
E) 11 KG
16) A licensed broker is preparing an entry using a foreign manufacturer's invoice that shows
only foreign currency. The importer stated they did not have an agreement prior to
exportation concerning the currency conversion rate. Which date should the broker use to
determine the rate of exchange for calculation of the entered value?
A) Date the goods are ready to leave the factory
B) Date of export
C) Date that duty is paid
D) Date of entry
E) Date the importer paid for the goods
13
The following question is to be used for answers 17 through 19.
17) For a consumption entry made on July 18, 2014, the statutory 1-year period for liquidation
may be extended by a port director for a period not to exceed _________.
A) 3 years
B) 2 years
C) 1 year
D) 180 days
E) 90 days
18) The total time for which extensions may be granted may not exceed ______.
A) 1 year
B) 2 years
C) 3 years
D) 4 years
E) 5 years
19) Hence, if CBP does not actively liquidate the entry in question by __________, it will be
deemed liquidated by operation of law on said date.
A) July 18, 2016
B) July 18, 2017
C) July 18, 2018
D) July 18, 2020
E) July 18, 2019
20) Which of the following is NOT a valid reason for extension of liquidation?
A) Liquidation is suspended as required by statute
B) Additional information is required by CBP for proper appraisement of merchandise
C) The importer’s merchandise is before Customs Court pending litigation
D) Additional information is required by CBP for proper classification of merchandise
E) The importer requests an extension in writing showing good cause
21) A nonresident corporation can enter merchandise for consumption if it
has______________________.
A) an ultimate consignee located somewhere in the United States
B) a resident agent anywhere in the United States
C) a broker located in the United States to clear its merchandise
D) a resident agent in the port of entry who is authorized to accept process against that
corporation
E) a resident agent in the port of entry who is authorized to accept process against that
corporation and files a bond with conditions set forth in 113.62 CFR
14
Category IV: Foreign Trade Zones
22) _________________ is the procedure for delivery of merchandise to a zone without prior
application and approval on Customs Form 214.
A) Constructive Transfer
B) Activation
C) Transfer
D) Admit
E) Direct Delivery
23) What CBP Form is used to admit merchandise into a Foreign Trade Zone (FTZ)?
A) CBP Form 7501
B) CBP Form 214
C) CBP Form 3499
D) CBP Form 3461
E) CBP Form 6043
24) Absolute quota merchandise imported in excess of the admissible quantity may NOT
be_____.
A) held in an FTZ for the opening of the next quota period
B) held in a warehouse for the opening of the next quota period
C) exported under CBP supervision
D) destroyed under CBP supervision
E) entered at a higher rate of duty
25) An FTZ Operator shall prepare a reconciliation report within ___ days of the end of the
zone/sub zone year unless the port director authorizes an extension for reasonable cause.
A) 30
B) 60
C) 90
D) 120
E) 180
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Category V: Classification
26) Where would a women’s knitted sweater from Ireland with a fiber content of 50% merino
wool and 50% man-made rayon be classified in the Harmonized Tariff Schedule of the
United States (HTSUS)?
A) 6110.30.1520
B) 6110.20.2020
C) 6110.30.1020
D) 6110.19.0030
E) 6105.20.1000
27) Daisy’s Dairy Delights wishes to import ice cream. They are a new importer with a limited
importing history and the low rate quota for ice cream is closed. They are importing
samples, in shipments exceeding 5 kilograms, to determine which flavors they will carry in
their line and request you classify it under 2105.00.0500 which references GN 15. They do
not have any written approvals or licenses from the Department of Agriculture. The product
is of a type subject to tariff-rate quota and is subject to the provisions of Subchapter IV of
Chapter 99. Which of the following is NOT a reason this classification can be used?
A) They are not importing such products for the account of any agency of the U.S.
Government.
B) The products are not being imported for personal use.
C) Such products, which will not enter the commerce of the United States, are imported as
samples for taking orders; for exhibition, display or sampling at a trade fair; for
research; for use by embassies of foreign governments; or for testing of equipment,
provided that written approval from the Secretary of Agriculture or his/her designated
representative of the United States Department of Agriculture (USDA) is presented at
the time of entry.
D) The shipment of the product exceeds 5 kilograms.
E) This tariff number can only be used when the low rate quota is open but the importer has
not been importing long enough to obtain a dairy license from USDA.
28) An article composed of two different base metals, with the exception of ferroalloys and
master alloys, is classified based on which of the following?
A) The metal component that imparts the essential character of the article
B) The metal that possesses the chief value
C) The metal that contributes the most toward marketing the article
D) The metal that is referenced last (in numerical order) in the Harmonized Tariff Schedule